A Portfolio Has 45% of Its Value in IBM Shares

question 10

Multiple Choice

A portfolio has 45% of its value in IBM shares and the rest in Microsoft (MSFT) . The volatility of IBM and MSFT are 33% and 35%, respectively, and the correlation between IBM and MSFT is 0. What is the standard deviation of the portfolio?

• A) 19.45%
• B) 27.96%
• C) 34.04%
• D) 24.31%

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Definitions:

Social Norms

Accepted behaviors and standards within a group or society that guide members' actions and interactions.

Diminished Respect

Diminished respect describes a reduction in the admiration, esteem, or regard that someone holds for another person or entity, often due to actions or behaviors deemed unacceptable or disappointing.

Increased Social Pressure

The amplification of societal or group force that influences individuals to conform to expected norms or behaviors.

Directive Leadership

A leadership style characterized by giving clear, explicit instructions and expecting compliance from team members.